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Strategies & Market Trends : The Covered Calls for Dummies Thread -- Ignore unavailable to you. Want to Upgrade?


To: FaultLine who wrote (390)5/2/2001 3:41:19 PM
From: Seeker of Truth  Read Replies (3) | Respond to of 5205
 
No doubt volatile stocks give us higher returns on the covered call when we just consider the covered call itself. I have no statistics but maybe, just maybe, the expected return from selling calls on less volatile stocks works out to be the same as that from selling covered calls on the more volatile stocks when we include the possibility of loss on the underlying stock.